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Quantitative Finance · Glossary

What is Liquidity vault?

Definition 21.4 Markets III: Commodities, Energy and Crypto · Chapter 21 — On-Chain Order Books and Perpetual DEXs

A liquidity vault is a pool of depositors’ capital run by a protocol, or by a manager under protocol rules, that makes markets, takes over liquidated positions or supplies capital to a venue, sharing its P&L among its depositors.

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